The Fed is widely expected to ease the FFR by 25 bps. There could be as many as 3 dissents favoring a larger cut of 50 bps. This is also a time when the Summary of Economic Projections and particularly, the median of the SEPs is released and scrutinized. Attention will be paid as to how many FFR rate cuts are expected before the end of the year (possibly two) and before year-end 2026 (probably another two or three), as well as GDP growth and inflation for both years, which are not expected to change significantly. This may be influenced visibly by Stephen Miran, if he puts in noticeably low projections for the FFR for this year end and next.
